Actis Completes Payment for City Lodge Hotels Post-Acquisition
Private equity firm Actis has paid 1 billion shillings to complete the purchase of Fairview Hotel, Town Lodge and City Lodge Two Rivers in Nairobi from a South African hotel group.
City Lodge Hotels Limited says it received funds from Actis which also acquired a hotel in Tanzania as part of the transaction.
“Shareholders are … advised that the gross proceeds from the disposals, as set out in the terms announcement, have been received and used to repay the credit facilities maturing within the next 14 months, as well as the outstanding overdraft “City Lodge said in a statement. business update.
The multinational announced mid-last year that it had put the three Kenyan hotels and the City Lodge Hotel in Dar es Salaam in Tanzania up for sale as part of its plans to leave East Africa after to barely seven years of activity.
The company says units in East Africa had losses in the region of 2 billion shillings by the end of 2020.
The company says occupancy levels have been below expectations at Two Rivers, while bookings at the Tanzanian unit have been slow, leaving only Fairview with a robust performance.
He said the sale was prompted by the need to reduce debt levels and eliminate operating losses. The Fairview Hotel has 127 rooms; The City Lodge Hotel at Two Rivers has 171 rooms and the Town Lodge Upper Hill has 84 rooms.
The deal involves a joint bid between Actis and a private company registered in the British Virgin Islands called Jamison Valley Holdings.
Documents filed with the Comesa Competition Authority show that the hotels were purchased by Actis and Jamison Valley Holdings indirectly through Ukarimu property funds. The two acquirers have formed a special purpose vehicle – SPV listed in Mauritius called Msafiri Limited which will own Ukarimu.
The documents do not indicate what stake each company will have in the SPV or the ownership details of Jamison listed in the offshore tax haven of the British Virgin Islands.